Fraud detection mechanism adapted for inconsistent data collection

• US 20060026102A1
• Filed: 09/15/2004
• Published: 02/02/2006
• Est. Priority Date: 07/28/2004
• Status: Active Grant

• Current Assignee: Pitney Bowes Incorporated (Böwe Systec AG)
• Original Assignee: Pitney Bowes Incorporated (Böwe Systec AG)
• Inventors: Ryan, Frederick W. Jr.
• Granted Patent: US 8,332,230 B2
• Time in Patent Office: Days
• US Class Current: 705/50
• CPC Class Codes: G07B 17/00362 Calculation or computing within apparatus, e.g. calculation of postage value
• CPC Class Codes: G07B 17/00435 Details specific to central, non-customer apparatus, e.g. servers at post office or vendor
• CPC Class Codes: G07B 2017/00427 Special accounting procedures, e.g. storing special information
• CPC Class Codes: G07B 2017/00443 Verification of mailpieces, e.g. by checking databases

Abstract

Fraud detection mechanisms and methods that are adapted for inconsistent data collection are provided. Data is analyzed to determine normal operational variations from ideal system behavior. Profiles are developed for each individual sender, e.g., the number of multiple scans performed per confirmation number generated by each sender, and other parameters, such as delivery areas, e.g., the number of multiple scans performed per specific geographic area. If the sender'"'"'s profile differs significantly from the normal operational variations, there is an indication of potential fraudulent activity and an investigation can be initiated. By analyzing a combination of sender and delivery scan data with system wide scan data, the effect of inconsistent data is minimized to significantly reduce the number of erroneous indications of fraudulent activity while still providing a high level of fraud detection.

Claims

1. In a verification system having items intended for a single use, in which usage of an item is confirmed by scanning an identification number associated with the item, and wherein scanning activity is inconsistent, a method for identifying possible fraudulent use of the identification numbers by a user comprising:

creating a profile of scanning activity for substantially all items that meet a first parameter, the profile including data related to multiple scanning rates for items that meet the first parameter;

creating a profile of scanning activity for substantially all items used by a specified user, the profile including data related to multiple scanning rates for items used by the specified user;

determining if a multiple scanning rate from the profile of scanning activity for substantially all items used by the specified user is greater than a first threshold value, the first threshold value being based on a corresponding multiple scanning rate from the profile of scanning activity for substantially all items that meet the first parameter; and

if the multiple scan rate from the profile of scanning activity for substantially all items used by a specified user is greater than the first threshold value, identifying the specified user as a suspect for possible fraudulent use of the identification numbers.

2. The method of claim 1, wherein if the multiple scan rate from the profile of scanning activity for substantially all items used by a specified user is greater than the first threshold value, before identifying the specified user as a suspect for possible fraudulent use of the identification numbers the method further comprises:

determining if an extended fraud detection check is required; and

if it is determined that an extended fraud detection check is not required, then identifying the specified user as a suspect for possible fraudulent use of the identification numbers.

3. The method of claim 2, wherein if it is determined that an extended fraud detection check is required, the method further comprises:

creating a profile of scanning activity for substantially all items that meet a second parameter, the profile of scanning activity for substantially all items that meet the second parameter being a subset of the profile of scanning activity for substantially all items that meet the first parameter;

creating a profile of scanning activity for substantially all items used by the specified user that meet the second parameter;

determining if at least one multiple scanning rate from the profile of scanning activity for substantially all items used by the specified user that meet the second parameter is greater than a second threshold value for the second parameter, the second threshold value being based on a corresponding multiple scanning rate from the profile of scanning activity for substantially all items used that meet the second parameter; and

if the multiple scan rate from the profile of scanning activity for substantially all items used by a specified user that meet the second parameter is greater than the respective second threshold value for the second parameter, identifying the specified user as a suspect for possible fraudulent use of the identification numbers.

4. The method of claim 3, wherein determining if a multiple scanning rate from the profile of scanning activity for substantially all items used by the specified user that meet the second parameter is greater than a respective second threshold value further comprises:

determining if a number of total scans for items used by the specified user that meet the second parameter is greater than a predetermined minimum number of scans; and

if the number of total scans for items used by the specified user that meet the second parameter is not greater than the predetermined minimum number of scans, disregarding the profile of scanning activity for substantially all items used by the specified user that meet the second parameter.

5. The method of claim 3, wherein the first parameter is use in a first geographic region, and the second parameter is use in a second geographic region, the second geographic region being a subset of the first geographic region.

6. The method of claim 5, wherein creating a profile of scanning activity for substantially all items that meet a second parameter comprises:

creating a profile of scanning activity for substantially all items used in a plurality of second geographic regions, each of the plurality of second geographic regions being a subset of the first geographic region.

7. The method of claim 6, further comprising:

creating a profile of scanning activity for substantially all items used by the specified user in each of the plurality of second geographic regions;

selecting one of the plurality of second geographic regions,

determining if a multiple scanning rate from the profile of scanning activity for substantially all items used by the specified user in the selected one of the plurality of second geographic regions is greater than a second threshold value for the selected second geographic region, the respective second threshold value being based on a corresponding multiple scanning rate from the profile of scanning activity for substantially all items used in the selected second geographic region; and

if the multiple scan rate from the profile of scanning activity for substantially all items used by a specified user in the selected second geographic region is greater than the respective second threshold value for the selected second geographic region, identifying the specified user as a suspect for possible fraudulent use of the identification numbers.

8. The method of claim 7, further comprising:

repeating the determining if a multiple scanning rate from the profile of scanning activity for substantially all items used by the specified user in the selected one of the plurality of second geographic regions is greater than a second threshold value for the selected second geographic region for each of the plurality of second geographic regions.

9. The method of claim 1, wherein determining if a multiple scanning rate from the profile of scanning activity for substantially all items used by the specified user is greater than a first threshold value further comprises:

determining if a number of total scans for items used by the specified user is greater than a predetermined minimum number of scans;

if the number of total scans for items used by the specified user is not greater than the predetermined minimum number of scans, discontinuing processing; and

if the number of total scans for items used by the specified user is greater than the predetermined minimum number of scans, then determining if a multiple scanning rate from the profile of scanning activity for substantially all items used by the specified user is greater than a first threshold value.

10. The method of claim 1, wherein the data related to multiple scanning rates for items that meet the first parameter includes a total number of scans performed and a percentage of identification numbers scanned more than once.

11. The method of claim 10, wherein the data related to multiple scanning rates for items that meet the first parameter further includes a percentage of identification numbers scanned more than once within a predetermined period of time and a percentage of identification numbers scanned more than once on different days.

12. The method of claim 1, wherein the items are indicia that evidence payment of postage for mail pieces.

13. The method of claim 12, wherein the identification number is a delivery confirmation number.

14. The method of claim 12, wherein the first parameter is a class of service for the mail pieces.

15. The method of claim 1, wherein the item are coupons.

16. The method of claim 1, wherein the first parameter is use in a first geographic region.

17. A system for identifying possible fraudulent use of identification numbers associated with items intended for a single use, wherein usage of an item is confirmed by scanning the identification number associated with the item, and wherein scanning activity is inconsistent, the system comprising:

a database for storing data associated with scanning the identification numbers;

means for creating a profile, from the data stored in the database, of scanning activity for substantially all items that meet a fist parameter, the profile including data related to multiple scanning rates for items that meet the first parameter;

means for creating, from the data stored in the database, a profile of scanning activity for substantially all items used by a specified user, the profile including data related to multiple scanning rates for items used by the specified user; and

means for determining if a multiple scanning rate from the profile of scanning activity for substantially all items used by the specified user is greater than a first threshold value, the first threshold value being based on a corresponding multiple scanning rate from the profile of scanning activity for substantially all items that meet the first parameter;

wherein if the multiple scan rate from the profile of scanning activity for substantially all items used by a specified user is greater than the first threshold value, specified user is identified as a suspect for possible fraudulent use of the identification numbers.

18. The system of claim 17, further comprising:

means for determining if an extended fraud detection check is required,

wherein if the multiple scan rate from the profile of scanning activity for substantially all items used by a specified user is greater than the first threshold value, before identifying the specified user as a suspect for possible fraudulent use of the identification numbers, it is determined if an extended fraud detection check is required, and if it is determined that an extended fraud detection check is not required, then the specified user is identified as a suspect for possible fraudulent use of the identification numbers.

19. The system of claim 18, further comprising:

means for creating, from data stored in the database, a profile of scanning activity for substantially all items that meet a second parameter, the profile of scanning activity for substantially all items that meet the second parameter being a subset of the profile of scanning activity for substantially all items that meet the first parameter;

means for creating, from the data stored in the database, a profile of scanning activity for substantially all items used by the specified user that meet the second parameter; and

means for determining if a multiple scanning rate from the profile of scanning activity for substantially all items used by the specified user that meet the second parameter is greater than a second threshold value for the selected second geographic region, the respective second threshold value being based on a corresponding multiple scanning rate from the profile of scanning activity for substantially all items used that meet the second parameter,

wherein if the multiple scan rate from the profile of scanning activity for substantially all items used by a specified user that meet the second parameter is greater than the respective second threshold value for the second parameter, the specified user is identified as a suspect for possible fraudulent use of the identification numbers.

20. The system of claim 19, further comprising:

means for determining if a number of total scans for items used by the specified user that meet the second parameter is greater than a predetermined minimum number of scans,

wherein if the number of total scans for items used by the specified user that meet the second parameter is not greater than the predetermined minimum number of scans, the profile of scanning activity for substantially all items used by the specified user that meet the second parameter is disregarded.

21. The system of claim 19, wherein the first parameter is use in a first geographic region, and the second parameter is use in a second geographic region, the second geographic region being a subset of the first geographic region.

22. The system of claim 17, wherein the means for determining if a multiple scanning rate from the profile of scanning activity for substantially all items used by the specified user is greater than a first threshold value further comprises:

means for determining if a number of total scans for items used by the specified user is greater than a predetermined minimum number of scans,

wherein if the number of total scans for items used by the specified user is not greater than the predetermined minimum number of scans, further processing for the specified user is discontinued.

23. The system of claim 17, wherein the data related to multiple scanning rates for items used that meet the first parameter includes a total number of scans performed and a percentage of identification numbers scanned more than once.

24. The system of claim 23, wherein the data related to multiple scanning rates for items used that meet the first parameter further includes a percentage of identification numbers scanned more than once within a predetermined period of time and a percentage of identification numbers scanned more than once on different days.

25. The system of claim 17, wherein the items are indicia that evidence payment of postage for mail pieces.

26. The system of claim 25, wherein the identification number is a delivery confirmation number.

27. The system of claim 25, wherein the first parameter is a class of service for the mail pieces.

28. The system of claim 17, wherein the item are coupons.

29. The system of claim 17, wherein the fist parameter is use in a first geographic region.